Indian crypto custodian Liminal receives in principle approval from Abu Dhabi regulator at ADGM

Indian crypto custodian Liminal receives in principle approval from Abu Dhabi regulator at ADGM

In a press release, Indian based digital asset custodian and wallet, Liminal has been granted an In Principle Approval by Abu Dhabi’s Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) to operate as a custody provider for Virtual Assets.

Liminal is working diligently to fulfill all the IPA conditions and meet FSRA’s stringent requirements to receive the Financial Services Permission (FSP).

As per Liminal, receiving the FSP from the FSRA will empower Liminal in extending its services as a trusted and reliable custodian for Virtual Assets within the ADGM jurisdiction and serve the broader MENA region. Liminal also recently launched its compliance solutions suite, with Notabene’s Travel Rule solution.

Earlier this year, in May, Liminal achieved another milestone by obtaining the TCSP License from the Hong Kong Companies Registry, enabling regulated digital asset custodial services in Hong Kong.

When Liminal secures the FSP from the FSRA, it will play a vital role in the Web3 ecosystem in the UAE, expanding its product and service offerings for the MENA region. Liminal will offer institutions a comprehensive suite of services designed to safeguard their virtual assets effectively.

Manan Vora, Senior VP of Strategy & Business Operations at Liminal, expressed enthusiasm about the IPA, stating, “ADGM has established itself as a thriving hub for innovation, growth, and maturation of the Web3 ecosystem. Their dedication to formulating clear and comprehensive regulations has created a trusted and secure environment for investors and Web3 enterprises. Recognizing the escalating demand for secure custody services in the MENA region, we took this strategic step to cater to the industry’s evolving needs. The IPA marks a significant leap forward in our mission to provide institutional-grade custody services for the digital asset industry. We are genuinely thrilled to contribute to the growth of this emerging market. After setting up an entity in Abu Dhabi, our next step is to obtain the FSP, and work closely with the ADGM team to provide regulated custody operations.”

Arvind Ramamurthy, Chief of Market Development at ADGM said, “We extend our congratulations to Liminal on being granted the IPA from the FSRA of ADGM, which paves the way for them to become fully operational in ADGM as a premier custody provider for virtual assets. As an international financial center of the UAE’s capital, ADGM’s vision for fostering a dynamic and trusted financial ecosystem prioritizes upholding the highest standards of security, innovation, and regulatory compliance. Liminal’s capabilities and dedication align seamlessly with ADGM’s goals and reinforce our commitment to driving the growth of the digital asset space in Abu Dhabi and beyond. We anticipate witnessing Liminal’s positive impact on the market and its contribution to the advancement of virtual asset services.”

Jehanzeb Awan, Founder & CEO, J. Awan & Partners, praised Liminal’s commitment and said, “It’s truly impressive to witness Liminal’s dedication to regulatory compliance and their unwavering service to the digital asset industry. Our joint efforts in undergoing stringent screening procedures and audits have culminated in a significant milestone with the issuance of the IPA. I am confident that Liminal will continue to set new standards in the virtual asset custody space, while fostering innovation in ADGM’s rapidly emerging market.”

In its commitment to delivering regulated and compliant custody solutions in the Middle East, Liminal is pleased to welcome Dr. Bhaskar Dasgupta, Veteran Business Strategist, to Its Board in Abu Dhabi. Dr. Dasgupta is highly regarded for his contributions to ADGM, and has been instrumental in revolutionizing cryptocurrency regulation on a global scale. In the past, he has also held distinguished positions as the Chief Operating Officer of UK Export Finance and held leadership positions at esteemed financial institutions, including HSBC, ABN AMRO, Citigroup, and PwC.

South African crypto exchange receives initial approval from Dubai’s virtual asset regulator

South African crypto exchange receives initial approval from Dubai’s virtual asset regulator

In a blog announcement published by VALR, a South African based crypto exchange, they state that their subsidiary VALR FZE has won an initial approval from Dubai’s Virtual Asset Regulatory Authority (VARA), marking a pivotal moment in our journey towards global expansion.

As per the blog post, “The initial approval granted to VALR FZE does not allow it to undertake any virtual asset services yet, but is a critical step as it seeks to establish a virtual asset exchange in Dubai and affirms VALR’s position as a reputable player in the virtual asset industry, committed to upholding the highest standards of operational integrity, compliance and security. “

Co-founder and CEO, Farzam Ehsani, stated, “For the past 5 years, VALR has been working closely with regulators to inform regulatory frameworks that protect the public while allowing responsible innovation to flourish. This initial approval from VARA is a significant milestone for VALR to bring our products and services to a more global audience under the auspices of a world-leading regulator.”

Blake Player, Head of Growth at VALR highlighted the strategic importance of Dubai and the Middle East, adding, “We see Asia, the Middle East, and the UAE as attractive markets with significant crypto flows. Dubai is quickly gaining recognition as a forward-thinking and pragmatic jurisdiction for crypto businesses. Setting up in Dubai provides an excellent opportunity to serve the regional market and a global customer base from a crypto and business-friendly jurisdiction.”

VALR is not the first crypto exchange seeking a license in the UAE nor will it be the last. Many international crypto exchanges including Binance, crypto.com, Bybit, and CoinBase have all expressed their interest in the UAE.

UAE’s ADGM grants crypto custodian Changer an FSP license

UAE’s ADGM grants crypto custodian Changer an FSP license

UAE based changer.ae, a crypto custodian service provider has received  the Financial Services Permission (FSP) license by the Financial Services Regulatory Authority (FSRA) in the Abu Dhabi Global Market (ADGM).

With the FSP, Changer has become officially authorized to offer its services to individuals who are looking for a robust and reliable platform to hold their crypto currencies. Being uniquely positioned in the UAE, Changer focuses on protecting crypto based investors and informing the community about safety, risks, and crypto investments through its state-of-the-art custodian services.

Changer’s custody solution is an easy-to-use, all-in-one platform that offers customers simplicity at their fingertips while safeguarding their virtual assets. Individuals from all over the world can soon access the mobile application and use it to store their digital assets, with peace of mind that their investments are secure and always insured.

Changer’s enterprise-grade and robust infrastructure uses advanced encryption and multi-signature authorization to enhance the security of its wallets. Unlike most applications, Changer caters to investors looking for an independent provider of safe custody. By separating trading venue and storage, market participants are better able to ensure the protection of client capital.

Regulated by the world-class advanced regulatory framework of Abu Dhabi Global Market (ADGM), Changer offers clarity and transparency in its services. Since the crypto world is a very fast-paced one and can be overwhelming at times, Changer has been designed with our clients in mind, it is simple, straightforward, and user-friendly. The intuitive interface allows customers to easily manage their digital assets, make transactions, and monitor their account activity through one of the fastest and most efficiently designed platforms. Moreover, there is a dedicated team of experts that is available for support and to answer any questions our clients may have.

Nadeem Ladki, Senior Executive Officer of Changer, commented on the launch: “We would like to thank his excellency H.E Ahmed Jasim Al Zaabi, Chairman of ADGM, the Financial Services Regulatory Authority, and particularly the Authorization Team for granting us the FSP license. This license is an endorsement from one of the most reputable regulators in the world and marks Changer’s commitment to maintaining a transparent and secure relationship with ADGM, ensuring that all our clients’ virtual assets are safeguarded in the safest way possible”.

He added: “I would like to extend my heartfelt gratitude to the dedicated Changer team, our partners, and the regulators who have made the launch possible. Our combined hard work has made Changer come to life, soon to be offering individuals all over the world the possibility to protect their investments with cutting-edge security measures. With Changer’s services catering to a global audience, we are assisting in driving the UAE’s ambition to become a global center for the crypto industry and virtual asset community”.

Beyond the imminent launch of its custody solution, Changer plans to expand its services in the near future to offer its clients simplified fiat conversion and fiat escrow services thereby enriching its product portfolio.

Standard Chartered’s digital asset platform received In Principle approval from Abu Dhabi’s ADGM

Standard Chartered’s digital asset platform received In Principle approval from Abu Dhabi’s ADGM

Standard Chartered’s backed digital asset platform, Zodia markets, has received an In-Principle Approval (IPA) fulfilling the pre-requisites to receive a Financial Services Permission (FSP) for OTC broker-dealer in virtual assets by Abu Dhabi Global Market (ADGM), Abu Dhabi’s international financial center.

As per the press release, Zodia Markets has chosen to expand into the UAE as the region establishes itself as a rapidly emerging hub for digital assets. The strategic expansion provides institutional investors from the Middle East and Africa with reliable access to this growing, alternative asset class, consolidating Zodia Markets’ position as an integral part of the global digital asset landscape.

Salem Mohammed Al Darei, CEO of ADGM Authority said, “We congratulate Zodia Markets on receiving the IPA from ADGM and welcome them to our vibrant ecosystem. Our evolving regime, progressive regulatory environment, and strong value proposition support businesses in the digital asset space, as we remain steadfast in upholding the highest standards. The harmony of traditional and new-age finance in Abu Dhabi with an international leading digital asset firm such as Zodia Markets that is backed by the well-established Standard Chartered will contribute to further enhancing the attractiveness of ADGM as a preferred destination for global entities.”

Andrew Price, Chief Compliance Officer of Zodia Markets said, “Abu Dhabi has already established a clear and forward-looking virtual asset regulatory framework. This early adoption and foresight have enabled it to attract innovation, talent and investment while raising the bar for compliance in virtual asset firms. It has been a pleasure working with the FSRA so far and I look forward to deepening our roots in the region.” 

Usman Ahmad, CEO of Zodia Markets said, “We are delighted to achieve this milestone on the journey to establish ourselves in the Middle East. We are excited at the opportunities this will open up for our business and this demonstrates progress in our expansion as a leading institution-first digital asset trading business. Our goal is to provide institutions seamless access to trade digital assets without compromising on the standards and controls that exist in traditional financial markets.”

In August 2022, Zodia Markets had announced its intention to expand into Abu Dhabi in 2023. At the time the company had stated that Abu Dhabi would be Zodia Markets first presence in the MENA region as it targets growth opportunities.

Zodia went live in July 2022 in the United Kingdom. U.K.-based Zodia Markets is a sister company of Zodia Custody, the digital assets safekeeping platform. Both firms share the same majority shareholder in SC Ventures, the venture arm of Standard Chartered.

Prior to this Abu Dhabi’s ADGM had granted RAIN crypto broker a virtual asset brokerage and custody service license. In 2022 , cryptocurrency platform Rain received in-principle approval for financial services permission (FSP) from Abu Dhabi Global Market (ADGB), which if it is fully approved will allow it to operate beyond the GCC region and offer a greater number of virtual asset pairs.

Liminal crypto wallet custodian partners with Notabene to offer travel rule solution in UAE and globally

Liminal crypto wallet custodian partners with Notabene to offer travel rule solution in UAE and globally

Liminal, a provider of wallet infrastructure and custody solutions, with a presence in the UAE has launched its compliance solutions suite, with Notabene’s Travel Rule solution.

According to recent news pieces, Liminal’s compliance suite presents features to aid clients with their regulatory obligations, including integration to enable communication between virtual asset service providers, providing an interface to fulfil regulatory obligations, supplying compliance solutions to prioritise data protection, allowing customisation to cater to compliance, and real-time monitoring and alerts to address compliance issues.

Rahil Shaikh, AVP of product and blockchain, Liminal, stated, “We are looking forward to introducing our compliance solutions suite, strengthened through our collaboration with Notabene. At Liminal, our objective is to drive innovation within the digital asset industry, and this partnership aims to reinforce our commitment to providing regulatory-compliant solutions for our clients. By joining forces with Notabene, we seem to have empowered our customers with travel rule compliance.”

Liminal’s latest suite of compliance solutions, coupled with Notabene’s innovative Travel Rule integration, empowers clients with an efficient means to navigate compliance challenges. Liminal’s compliance suite presents a wealth of powerful features to aid clients in meeting their regulatory obligations, including:

a) Seamless Integration: The integration will enable smooth and secure communication between virtual asset service providers, streamlining the sharing of transactional data in compliance with regulatory mandates. 

b) Simplified Compliance Processes: Liminal’s suite empowers clients with a user-friendly interface that simplifies the compliance journey. Users can now effortlessly fulfill their regulatory obligations, saving time and resources. 

c) Enhanced Security: Security is of paramount importance in the world of digital assets. Liminal’s compliance solutions prioritize data protection, ensuring that sensitive information remains secure throughout the compliance process. 

d) Customizable Solutions: Recognizing the diverse nature of businesses operating in the cryptocurrency sector, Liminal’s suite allows customization to cater to specific compliance needs, ensuring flexibility and adaptability. 

e) Real-time Monitoring: With real-time monitoring and alerts, clients can proactively address compliance issues, thereby mitigating risks and reinforcing trust with regulatory bodies.

Liminal in May announced that it had applied for a license at at Abu Dhabi Global Market (ADGM) in an effort to offer regulated service in the region. Liminal which claims to have processed crypto transactions worth $5.6 billion on its platform, with over $550 million worth of assets under protection, believes that people will use digital assets either as part of investment or a part of underlying fundamental technology.

Mahin Gupta, Founder, Liminal stated to Khaleej Times, “Regulation will become uniform across the globe. UAE has taken a first mover advantage in the field of digital asset regulation, with much clarity. They have a clear idea about how they want to look at Metaverse, how they want to look at trading, how they want to look at custody and how they want to look at blockchain as a service and blockchain as a platform for other applications.”

Prior to that Liminal partnered with Dubai based payment gateway platform Magik Labs. Through this partnership, Liminal would empower Magik Labs to create a series of transit payment wallets to receive payments from their users. These payments will then be converted to desired tokens or NFTs via connectivity to other decentralized exchange (DEX) aggregators, over the counter (OTC) desks or trading platforms. Liminal’s MPC hot wallets will enable transit wallet addresses and provide automation of transaction flows.

At the time, Manan Vora, senior vice president, strategy and operations at Liminal had noted, “Our partnership with Magik Labs is a part of our continued efforts to strengthen Liminal’s position in the Mena region as the first choice of businesses for digital wallet infrastructure services.”

The compliance solutions suite will be offered to Liminal’s clients, including exchanges, custodians, and institutional investors. 

Bahrain based RAIN crypto exchange broker receives full license in UAE

Bahrain based RAIN crypto exchange broker receives full license in UAE

While Bahrain based Rain crypto broker exchange had sent out a teaser last week saying a big announcement was coming, Citywire published an announcement on July 25th 2023 saying that RAIN trading Limited ( Rain ADGM) has been granted Abu Dhabi Global Market virtual asset brokerage and custody service license.

This comes just after BitOasis’s active operational license was suspended by Dubai’s virtual asset regulatory Authority.

According to CityWire, “Rain ADGM will offer institutional and a number of retail clients in the UAE the ability to buy, sell and store virtual assets, in addition to having a fiat-to-virtual asset onramp in AED.”

Joseph Dallago, CEO of Rain, stated to CityWire ‘This achievement represents a significant milestone not just for Rain, but for the entire virtual assets industry. With this license, we can now offer our customers an even greater level of security and trust, as we continue to drive innovation and growth in the virtual assets space. Rain now offers the only regulated on-ramp and off-ramp of AED into virtual assets in the UAE.”

Arvind Ramamurthy, Chief Of Market development at ADG added, “With the inclusion of companies like Rain, we are continuously trying to add value to Abu Dhabi’s digital asset ecosystem, This is while also supporting the diversification of our flourishing economy.”

In 2022 , cryptocurrency platform Rain received in-principle approval for financial services permission (FSP) from Abu Dhabi Global Market (ADGB), which if it is fully approved will allow it to operate beyond the GCC region and offer a greater number of virtual asset pairs.

The in-principle approval was granted by the Financial Services Regulatory Authority (FSRA) to Rain Financial Group’s ADGM registered entity Rain Trading Limited. Prior to that the company had raised$110 million in Series B funding .

At the time of receiving in principle approval, Rain co-founder Yehia Badawy  had said, “Working with regulatory bodies such as the FSRA is one of the fastest and most secure ways to offer cryptocurrencies to the region and benefits both customers and governmental bodies alike. We look forward to working hard to fulfil all IPA conditions to the satisfaction of the FSRA in order to obtain the FSP to operate.”

Rain was founded in 2017 by Abdullah Almoaiqel, AJ Nelson, Joseph Dallago, and Yehia Badawy.

UAE Crypto exchange Bitoasis clarifies that VARA’s market notification doesn’t impact their services

UAE Crypto exchange Bitoasis clarifies that VARA’s market notification doesn’t impact their services

A day after Dubai’s virtual asset regulatory authority issued a market notificiation stating that it had taken enforcement actions against BitOasis and advised investors and consumers that BitOasis’s MVP operational license is under review for not meeting mandated conditions, BitOasis replies back that this does not effect the services being offered to existing customers. 

BitOasis was supposed to satisfy certain requirements within 30-60 days of receiving their MVP operational license prior to being permitted to undertake any VARA regulated market activity. 

As such VARA is  exercising its authority to supervise and monitor compliance, assure fulfilment of prescribed conditions, impose remedial measures, and take necessary enforcement actions, including but not limited to holding BitOasis’ Licence status as non-operational.

In response to this BitOasis replied, “ BitOasis  ongoing work to fulfill select conditions associated with its Operational MVP License with respect to serving Institutional and Qualified Retail Investors. BitOasis is working closely with VARA on fulfilling the remaining conditions and is committed to providing a safe and secure service to its users.” 

BitOasis notes that the notification issued by Dubai’s VARA only covers institutional and qualified investors. BitOasis confirmed that it had not began offering thse services to these segments as they needed to fullfill all VARA mandated conditions under its Operational MVP license. 

As such according to the clarificiaiton by BitOasis, “This does not impact our ability to continue to provide broker dealer services to our existing retail users, although we undertake to not onboard any new clients until we have fully complied with VARA requirements.” 

BitOasis added that they are committed to remediate all outstanding post licensing conditions of their Operational MVP license as committed to the regulator, as well as working towards Full Market Product (FMP) licensing.  The clarification adds, “ We remain committed to securing a broker-dealer license, and operating a compliant, regulated platform in and from Dubai under VARA’s supervision. Transparency has always been a key value of our business – we will continue to update our community as we address these requirements prior to applying for an FMP license.” 

Oman takes the last step towards developing its virtual assets regulatory framework

Oman takes the last step towards developing its virtual assets regulatory framework

At the end of July 2023, the Oman Capital Market Authority issued a Public Consultation Paper on its Virtual Assets Regulatory Framework.

The Capital Market Authority, Sultanate of Oman (CMA), which regulates and develops Oman’s financial markets for the capital market and insurance sectors, had earlier announced its plans to establish the new regulatory framework for Virtual Assets (VA) and Virtual Asset Service Providers (VASP).

As per the Oman Capital Market Authority announcement, the entity is currently in the process of drafting the comprehensive and facilitative regulatory framework, which will include a new regulation to cover all virtual assets activities, a licensing framework for all VASP categories and a supervisory framework to identify, assess, and mitigate ongoing risks. This is being done after the CMA had made an extensive global analysis and benchmarking with other jurisdictions.

The proposed new regulatory framework is envisaged to cover activities such as crypto assets, tokens, crypto exchanges, and initial coin offerings, among others.

The CMA has invited public and all relevant stakeholders, VASPs, financial institutions, academics, legal firms, consumer groups and other businesses that may be impacted by the VA and VASP frameworks, to provide their views and comments to the public consultation paper. The public consultation paper may be downloaded from the CMA’s website at www.cma.gov.om.

Responses are required within three weeks or before August 17th 2023. Responses to the public consultation paper can be made electronically via email to: kemal.rizadi@cma.gov.om.

In February 2023, Oman CMA announced its plans to develop a regulatory framework for virtual asets and VASPs. To assist in the development of a comprehensive regulatory framework for virtual assets in Oman, the CMA engaged the services of XReg Consulting Limited, an international policy and regulatory consultancy that specializes in virtual assets, and Said Al-Shahry and Partners, Advocates & Legal Consultants (SASLO), an Omani law firm.

Binance receives MVP operational license from Dubai’s virtual asset regulator

Binance receives MVP operational license from Dubai’s virtual asset regulator

After Dubai’s virtual asset regulatory authority revoked the MVP ( Minimum Viable Product) license for BitOasis earlier this month, Binance has now announced that it is the first crypto exchange to receive an operational MVP license from VARA.

As per Binance blog, “Users who qualify will now be able to access regulated virtual asset services in Dubai under VARA’s investor protection and market assurance standards. This milestone achievement affirms Binance’s commitment to building a compliant exchange in collaboration with local regulators.”

Dubai’s Virtual Assets Regulatory Authority has issued Binance with an Operational Minimum Viable Product (MVP) license to operate virtual asset exchange services.

The blog goes further to state, “ We are pleased to announce that our Dubai subsidiary, Binance FZE, has become the first exchange to receive the Operational Minimum Viable Product (MVP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). “

The Operational MVP license enables Binance to offer services in Dubai approved by VARA, including exchange and broker-dealer services, initially to institutional and qualified retail investors.

The issuance of the operational MVP license follows Binance’s successful attainment of a provisional MVP license in March 2022 and a preparatory MVP license in September 2022.

VARA has now permitted Binance to operate two licensed activities: virtual asset exchange services and virtual asset broker-dealer services, limited to institutional and qualified retail investors in Dubai.

The progression from the Provisional License, granted in 2022, to an Operational MVP License, means eligible users in Dubai will now be able to access authorized services, including the ability to safely convert virtual assets to fiat under VARA-designated standards compliant with the intergovernmental Financial Action Task Force.

Institutions and residents that qualify to use the services provided by the Operational MVP License in Dubai can do so knowing they’re under investor protection and market assurance standards tailored specifically for the virtual asset sector, and required by VARA for any licensees to provide regulated virtual asset services in Dubai.

Richard Teng, Head of Regional Markets at Binance, commented: “We are honored to be the first exchange to be granted an operational Minimum Viable Product License by VARA — a result of over a year of due diligence, collaboration, and consistent demonstration of responsible intent – that now allows us to be able to leverage the potential of a progressive regulatory framework, enabling innovation while furthering user protection. Operating within this regulated ecosystem, we are committed to ensuring secure and seamless customer migration, with robust Know-Your-Customer and Customer-Due-Diligence as part of the rigorous onboarding remediation as stipulated by VARA. Our priority is to be able to operate this first fully regulated exchange in, and from Dubai, in a FATF-compliant ecosystem, setting the stage for global scalability with uncompromised user assurance.”

Alexander Chehade, Binance Dubai’s General Manager, noted: “The last few years have cemented Dubai as a global virtual asset hub and we are excited to be a witness to that growth as we build on our operations here, with continued commitment to market and investor security. With this operational MVP license, all users onboarded through this platform can expect access to a trusted and regulated service that prioritizes security alongside compliance with highly specialized, tier-one virtual asset regulations under VARA. This milestone achievement is one step closer to providing even more users with access to our services and we are excited about the continued work in this space.”

VARA’s website has updated that status of Binance to an MVP operational license. In the meantime Binance has been retreating from various countries, includig Germany, France, Canada, Cyprus, Austria and the Netherlands as it also faces legal battles in the USA and UK. 

This is the third license Binance receives in the GCC region. The first license granted to Binance was in Bahrain, as well as in Abu Dhabi UAE through ADGM ( Abu Dhabi Global Market).

CoinW crypto exchange receives initial approval from Dubai’s virtual asset regulator

CoinW crypto exchange receives initial approval from Dubai’s virtual asset regulator

In a recent blog post by CoinW, a crypto exchange, the company unilaterally announced that it has received an initial approval from Dubai Virtual Asset regulatory Authority. According to CoinW this is a significant step in their global expansion which will lead to substantial investments in the UAE market and MENA region.

As per the post the initial approval from VARA means that CoinW will be able to operate its regional business in Dubai within the newly announced regulatory framework and serve as its foundation for operation in the region.

Sonia Shaw the Global Cooperation Director of CoinW based out of UAE, commented that the UAE is growing into an important global cryptocurrency hub, with Dubai being the first global economy to establish a dedicated regulatory authority for the virtual asset industry. It is foreseeable that the cryptocurrency business in the Middle East will thrive in the coming years.

She states, “CoinW is optimistic about the potential of this city and the future opportunities it offers. We look forward to working with VARA and other local authorities to further invest in Dubai and promote the development of the virtual asset industry in the Middle East.”

CoinW has been dedicated to compliant operation since its inauguration in 2017. To date, CoinW has obtained various crypto-related compliant licenses in multiple countries and regions, including the US MSB financial license, Canadian MAB license, Lithuanian financial regulatory license, SVGFSA license, and others. This preliminary approval from VARA marks another important milestone for CoinW in terms of regulatory compliance and accelerates its strategic positioning for global expansion.